Software major Wipro, which reported a modest 8% growth in net profit for the January-March quarter year-on-year, was cautiously optimistic about revenues for 2012-13 while playing down the economic volatility in its two main markets for IT services, the US and Europe.
“The macro-economic environment has a role to play, but I don’t think you can put the entire blame of non-performance or (credit for) performance on macro-economic issues. It is really up to us to make an impact,” TK Kurien, executive director and CEO of Wipro, told HT.
Wipro’s net profit for January to March stood at Rs. 1,480 crore. Net revenues during this period were up by 19% from a year ago and stood at Rs. 9,869 crore.
Wipro maintained buoyancy for the Indian IT sector and went along with its peers TCS and HCL Technologies to say that “all is well” for the IT services.
Industry mood had dampened considerably when bellwether Infosys gave a revenue outlook that was below the average growth projected by industry association Nasscom.
Despite all the optimism, however, Wipro’s stock fell by 7% on the BSE to close at Rs. 410 as the company gave a flat revenue outlook for the April-June quarter, as the signing of some deals were delayed, and the company’s domestic business had seen a slowdown.
Kurien was however upbeat. “Our clients don’t take big decisions based only on the macro-economic environment,” he said. “It is really company dependent. In our case we had some challenges... and those are affecting our first quarter guidance.”
Wipro expects IT services revenues in April-June to be in the range of $1,520 to $1,550 million (Rs. 7,985 crore to Rs. 8,100 crore). Businesses from India and West Asia contribute around 9.5% to its revenues.